In brief: Prime Group loss, office space deal, Tinley Park land sale

Prime Group Realty Trust reported a loss of $62.4 million during the first quarter, compared to a loss of just $77,000 during the first quarter of 2007, because of a non-cash loss on its investment in Extended Stay Hotels Inc., according to the real estate investment trust's delayed quarterly report filed Wednesday. Six days after announcing a 2007 non-cash loss of $47.8 million on the hotel deal, the REIT disclosed an even larger loss. The value of Prime Group's $120-million investment in Extended Stay, which was made in June 2007, has dropped in value 95%, to just $5.6 million on March 31. Chicago-based Prime Group does not expect to receive a payment on the hotel investment this year. The REIT also disclosed that in January it sold its 50% interest in the United Building to its joint venture partner, the State Teachers Retirement System of Ohio. The joint venture stake is subject to a $66-million preferred ownership interest, also held by the pension fund, and a roughly $162-million mortgage.

Foundation buys Wacker office space

The philanthropic arm of a Chicago-based women's organization last week bought more than 7,116 square feet of office space at 55 W. Wacker Drive from Cape Horn Group LLC, which owns the building. Meanwhile, Zonta International Foundation has put up for sale its current headquarters at 557 W. Randolph St., a 21,800-square-foot, four-story building, hiring Jones Lang LaSalle Inc., according to real estate research firm CoStar Group Inc. At 55 W. Wacker, 50% of the 209,000-square-foot building is under contract, with 23% closed, Miami-based Cape Horn says.

Kiser Group markets 2 apartment buildings

Kiser Group, the Chicago-based apartment broker, has brought two properties to market, a 303-unit apartment building in Englewood and a 140-unit building in Uptown. An affiliate of Tricap Chicago LLC has hired Kiser Group to sell Englewood Terrace at 6425 S. Lowe Ave. with an asking price of $14.9 million, or $49,000 a unit, according to Kiser Principal Lee Kiser. The Tricap affiliate paid $5.5 million for the property in March 2007, according to a deed filed with the Cook County Recorder. In Uptown, the 140-unit building at 4607 N. Sheridan Road was on the market for just two days before an investor signed a contract to buy it, Mr. Kiser says. He declines to name the seller or buyer or disclose the price. The asking price is $13.5 million.

Community college buys Tinley Park parcel

Moraine Valley Community College paid $5.2 million for a parcel on the southwest corner of 179th and 94th avenues in Tinley Park, with plans to build a new classroom building, according to Millennium Properties R/E Inc., which represented the seller. The price was nearly $9.50 a square foot for the 12.6-acre site. The seller, Alphamed Health Partners LLC, had planned to develop a medical office building on the property.